News
 

Bookmark and Share

(0) 

NVIDIA Corp.’s chief financial officer said during the company’s first quarter of fiscal 2006 that NVIDIA has ceased production of its system logic for Microsoft Xbox console and that the software giant would not buy any additional Xbox chips from NVIDIA after the Q2 of the company’s fiscal year.

“For Xbox, we expect Q2 to be the last quarter of shipments. Microsoft has indicated they will not take any more products after Q2 and even more importantly we have stopped production of Xbox [components] and expect to have no inventory after Q2,” said Marvin Burkett, NVIDIA’s CFO.

Microsoft purchases hardware components for the original Xbox console, such as core-logic sets (that include built-in graphics processors), microprocessors, memory, central processing units, hard disk drives and other and then outsources manufacturing of the consoles to its other partners. With its Xbox 360 the company will have significantly different business approach and will actually control manufacturing of silicon components itself paying licensing fees for technology developers, such as ATI or SiS.

“The net result we expect to be flat to slightly up from Q1,” Mr. Burkett added referring to the effect of the information on the company’s financial performance.

“The Xbox is at the end of its light phase. Revenue for the quarters of the first half of [our] fiscal year is expected to be much lower than historical levels. We believe that growth in the GPU and MCP businesses along with Sony software and license contributions which begin in Q3 will offset the decline in Xbox revenue,” Mr. Burkett said.

Analyst firm Goldman Sachs claimed in a research note earlier this year that Microsoft Corp. would continue to manufacture and supply the original Xbox console for quite a while after the Xbox 2 launch to address price-conscious customers and emerging markets. Microsoft officials recently confirmed that new games for the Xbox console launched in late 2001 would be released throughout 2007, but the company has not said whether the Xbox console would be sold in volume after 2005.

Ceasing to buy components from at least one supplier means that further manufacturing of the Xbox beyond mid-2005 is limited by the number of components in Microsoft’s stock.

Microsoft did not comment on the news-story.

Discussion

Comments currently: 0

Add your Comment




Related news

Latest News

Wednesday, October 8, 2014

8:52 pm | Lisa Su Appointed as New CEO of Advanced Micro Devices. Rory Read Steps Down, Lisa Su Becomes New CEO of AMD

Thursday, August 28, 2014

12:22 pm | AMD Has No Plans to Reconsider Recommended Prices of Radeon R9 Graphics Cards. AMD Will Not Lower Recommended Prices of Radeon R9 Graphics Solutions

Wednesday, August 27, 2014

9:09 pm | Samsung Begins to Produce 2.13GHz 64GB DDR4 Memory Modules. Samsung Uses TSV DRAMs for 64GB DDR4 RDIMMs

Tuesday, August 26, 2014

6:41 pm | AMD Quietly Reveals Third Iteration of GCN Architecture with Tonga GPU. AMD Unleashes Radeon R9 285 Graphics Cards, Tonga GPU, GCN 1.2 Architecture

Monday, August 25, 2014

6:05 pm | Chinese Inspur to Sell Mission-Critical Servers with AMD Software, Power 8 Processors. IBM to Enter Chinese Big Data Market with the Help from Inspur